Supermarkets cash in despite cost of living

The state’s peak farm body says the billion-dollar profits of the major supermarkets are a reminder Australian families are paying the price for competition policy failures.

Coles posted a $1.1 billion annual profit on Tuesday, while Woolworths announced a $1.7 billion profit on Wednesday.

NSW Farmers Vice President Rebecca Reardon said the billion-dollar profit postings were a stark reminder of the “profit push” practices of the nation’s supermarket duopoly, which continued to cause pain at the checkout as well as the farm gate.  

“Crunch the numbers and it’s clear that these super profits simply don’t stack up as the cost-of-living crisis continues,” Mrs Reardon said.

“The cost of food increased by more than 14 per cent between December 2021 and December 2023, and while we’ve had inquiries this year, farmers are still receiving prices below the cost of production for their produce.

“This means farmers are struggling to afford to produce the food that families are struggling to afford while the grocery giants suck all the profit out between the paddock and plate.”

As several inquiries into supermarket behaviour continued, Mrs Reardon said meaningful competition reform had to be a major priority for the federal government, with emerging issues such as banking and airline competition presenting problems.

“Australians expect a fair go, but there are businesses out there making billions while people struggle, and that’s just not right,” Mrs Reardon said.

“The ugly truth is out there, and we need real action, real consequences and real powers for our consumer watchdog, because these businesses will only keep lining their pockets until we pull them up.

“In the short term, a mandatory, enforceable Food and Grocery Code of Conduct – as well as new divestiture powers as a tool to bust apart supermarkets for bad behaviour – is what we desperately need to hold these middlemen and their actions to account.”


Date: Wednesday, 28 August 2024
Media Contact: Eliza Fessey | 0427 411 220 | [email protected]